Fact or Fiction?
Who really oversees the HOA finances? The HOA Board of Directors, the HOA Board Treasurer, General Manager Layne Varney, the HOA Board or is it the Finance Committee, our contracted CPA or the annual independent contracted auditor?
Well, if you chose any one of those people or entries, you are partially correct. If you said “all of the above,” you are 100% correct.
As you know, it takes more than one person to run this homeowners association and there is no difference when it comes to overseeing our finances. We work as a team to ensure we are following all the correct financial and accounting procedures.
We have a complete financial “flowchart” of SunBird’s revenue sources, expenses and savings accounts. This flowchart outlines the financial operations for a quicker understanding. Here is a brief breakdown of the oversight of our financials. The chart is posted at the clubhouse on the HOA Board and is also displayed on the front page of SunBird’s website.
The SunBird HOA Board of Directors (BOD) is responsible for SunBird Golf Resort Homeowners Association as a whole, which includes the Clubhouse, Common Areas, General and Administration, Patrol, Post Office, Roads, Recreational and Food and Beverage departments. (Please note: The SunBird golf course is NOT under the oversight of the SunBird HOA – more on that in another article.) The board of directors is able to and has delegated the SunBird General Manager to oversee all of these operations under their closely-supervised direction.
The General Manager, as well as all SunBird Homeowner committees, fall under the direction and guidance of the HOA Board of Directors. The BOD, the HOA Treasurer and the Finance Committee are ultimately responsible for setting policy and procedures, including our financial guidelines, and to ensure we are following the proper procedures outlined in our CC&Rs, by-laws and, of course, state and federal guidelines.
As far as our in-house finances and accounting go, we have contracted with an independent CPA, Chris Solomon, who handles our day-to-day accounting which includes all financial transactions, deposits, accounts payable and receivables and provides monthly reports to the BOD and the General Manger. Mr. Solomon works with our HOA Manager and all department managers, as well as other office staff and the HOA Treasurer. We also have a separate, independent firm which audits our financial practices, procedures and transactions every year as another precaution.
Our SunBird Finance Committee, the HOA Board Treasurer and General Manager review the monthly financial reports, revenues and expenses for all operations, including all amenities. We monitor our investments, oversee the budget process, the audit and the insurance we carry, as well as review the suggested expenditures from the Project Review and Long-Range Planning Committee.
The Finance Committee makes recommendations to the board of directors on all items. The CPA also makes and/or reviews recommendations for improvement. The board then reviews and discusses the recommendations, receives feedback from residents at the board meetings and then votes to approve, disapprove or request more information before voting.
Bottom line: Come to the board meetings every second Monday for our agenda planning meeting and fourth Monday for the business meeting at 10:00 a.m. in the ballroom, September through May. Not only do you hear firsthand (facts) what is happening in your community; you can also voice your opinion. You may even win a small prize if you can answer the “fact or fiction” question at the fourth Monday business meeting!
If you have any questions, please feel free to contact the SunBird offices at 480-802-4901.
“Fact or Fiction?” will be a new monthly article established to help enlighten and educate our community about the many amenities and other financial operations of the SunBird Community.